Tata Consultancy Services Research Report
25 November 2012 Sector: IT Consulting & Software CMP: 1288 Rating: BUY Target Price: 1500 Stock Info
Investment Period: 15months Introduction: Tata Consultancy Services Limited is an Indian multinational information technology services, business solutions and outsourcing Services Company founded by JRD Tata in the year 1968 headquartered in Mumbai. TCS is a subsidiary of the Tata Group. It is one of India's most valuable companies and is the largest India‐based IT services company by 2012 revenues. It has 183 offices across 43 countries and 117 delivery centres across 21 countries. It also has 58 subsidiary companies. Products & Services: TCS provides a wide range of IT related products & services such as; application development, BPO (business process outsourcing), consulting, enterprise software, payment processing, software management and education services. Following are the service lines and their percentage to the total TCS revenue in the Q2 2012‐13:‐ Application development and maintenance: ADM is a part of IT that works with the business to develop new software, keep it running and make ongoing improvements. Asset leverage solutions: Assurance services: Assurance services provide independent and professional opinions that reduce the information risk (risk that comes from incorrect information). Business intelligence: BI is the ability of an organization to collect, maintain, and organize knowledge. This produces large amounts of information that can help develop new opportunities.
Market Cap: 2,52,109crs Equity: 195.7crs Face Value: 1 52 Week H/L: 1438‐1045
Key Financials (in crores) Net Sales EBIDTA Margin % Net Profit EPS Dividend FY 11‐12 38,858.55 33.87 13366.33 55.97 25 FY 10‐11 29,275.40 29.47 8700.44 38.62 14
Valuation Summary
FY 11‐12 20.60 8.5 55.31 44.24 0.72
FY 10‐11 23.7 10.4 44.38 38.80 na
Price to Earning
Investment Period: 15months Introduction: Tata Consultancy Services Limited is an Indian multinational information technology services, business solutions and outsourcing Services Company founded by JRD Tata in the year 1968 headquartered in Mumbai. TCS is a subsidiary of the Tata Group. It is one of India's most valuable companies and is the largest India‐based IT services company by 2012 revenues. It has 183 offices across 43 countries and 117 delivery centres across 21 countries. It also has 58 subsidiary companies. Products & Services: TCS provides a wide range of IT related products & services such as; application development, BPO (business process outsourcing), consulting, enterprise software, payment processing, software management and education services. Following are the service lines and their percentage to the total TCS revenue in the Q2 2012‐13:‐ Application development and maintenance: ADM is a part of IT that works with the business to develop new software, keep it running and make ongoing improvements. Asset leverage solutions: Assurance services: Assurance services provide independent and professional opinions that reduce the information risk (risk that comes from incorrect information). Business intelligence: BI is the ability of an organization to collect, maintain, and organize knowledge. This produces large amounts of information that can help develop new opportunities.
Market Cap: 2,52,109crs Equity: 195.7crs Face Value: 1 52 Week H/L: 1438‐1045
Key Financials (in crores) Net Sales EBIDTA Margin % Net Profit EPS Dividend FY 11‐12 38,858.55 33.87 13366.33 55.97 25 FY 10‐11 29,275.40 29.47 8700.44 38.62 14
Valuation Summary
FY 11‐12 20.60 8.5 55.31 44.24 0.72
FY 10‐11 23.7 10.4 44.38 38.80 na
Price to Earning